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- Buyer submits Letter of Intent (LOI) or ICPO and Bank Comfort Letter (BCL)
- Seller issues the draft contract.
- Buyer accepts and agrees or amends the terms and conditions of the draft contract by counter signature & companies seal and returning it to the seller. Draft Contract signed by both parties and sent via fax that will be deemed as original and valid.
- Hard copies of the Contract to be issued by and exchanged with the Buyer.
- Seller and Buyer will lodge the hard copies of the Contract with their respective banks.
- The Buyer bank provides Proof of Funds to the seller’s bank. The Proof Funds is the operative or non-operative LC
- Seller will provide the Proof of Product Bank to Bank. The prime banks mostly supply the POP after the LC has been established. Some US banks have already implemented it while others are considering it. Please do note that some banks do not offer POP service and it is a lawyer who will do it.
- Seller will issue 2% Performance Bond to activate the Letter of Credit.
- Delivery and shipment commence as per Contract
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